Home · Business · Sep 7 archive
Dollar Gains Stall Despite Strong Jobs Report
Confirmed
In Short: The US dollar's gains stalled despite a robust jobs report, as market sentiment remained strong and ETF inflows absorbed selling pressure.
Despite adding 162,000 jobs in August, beating expectations, the US dollar's gains were short-lived, with the Fear & Greed Index holding at 71 in the Greed territory. Market sentiment remained resilient, with steady ETF inflows helping to sustain gains.
Jaguar Land Rover announced plans to cut 4,000 jobs to save costs, facing competition from China, US tariffs, and the transition to electric vehicles. The carmaker's struggles highlight the challenges in the automotive industry.
The stronger-than-expected US jobs report also revived expectations that the Federal Reserve may consider a rate hike at its upcoming September meeting, despite the Fed emphasizing inflation trends.
What's confirmed
What's still developing
- Healey will detail plans to use public investment to "unlock private investment, to support our innovation economy, and to create the new jobs their areas need".
- The issuance of green bonds could also support governments worldwide in undergoing a green transition.
- Green bonds often provide tax incentives, such as credits and exceptions, making them more attractive to investors.
- Despite the headwinds, market sentiment remains strong, as reflected in the Fear & Greed Index, which holds at 71 in the Greed territory on Monday, down only marginally from 73 the day before.
- Steady ETF inflows are needed to absorb selling pressure and provide a tailwind to sustain gains.
- The dollar-Swiss franc saw strong rallies stall out with the benchmark pair registering modest gains of over 0.30% as the greenback was boosted by a solid US non-farm payrolls report, pushing the pair above the 50-day Simple Moving Average (SMA) to reach a daily high of 0.8126.
- Meanwhile, the euro-dollar saw sharp two-way price swings on Friday after the stronger-than-expected US jobs report triggered fresh volatility.
- The EURUSD pair initially fell to an intraday low of 1.1585 before recovering as the dollar struggled to sustain its gains.